Trump’s recognition of Morocco’s claims to Western Sahara turns region into “El Dorado” for investors

Donald Trump’s recognition of Morocco’s sovereignty over Western Sahara during the closing days of his first presidential term has transformed the once-disputed territory into a burgeoning economic hotspot, Bloomberg reports.

Long overlooked due to geopolitical tensions, the coastal region of Western Sahara is now seeing unprecedented development.

A $1 billion highway is underway to link the southern city of Dakhla with Tangier, Morocco’s gateway to the European Union. Additionally, a $1.2 billion port is under construction to support trade and logistics.

Tourism is booming, particularly from Europe, prompting plans for a new international airport and expansion of hospitality infrastructure. At the same time, the region is positioning itself as a green energy hub. Wind farms are being developed to help power Morocco’s stadiums during the 2030 FIFA World Cup, and some of that energy may eventually be exported to Europe.

Agribusiness and seafood industries are also expanding, further diversifying the local economy.

“Dakhla is an El Dorado for investors,” said Yanja El Khattat, head of the region’s elected council. “Its growth will be vertiginous.”

But not everyone is celebrating the surge in investment. The Polisario Front — which advocates for the territory’s independence — has warned it may intensify resistance if international support for Morocco continues, particularly under a potential second Trump presidency. The group claims occasional attacks on Moroccan forces near the Algerian border, though independent verification remains limited. Some U.S. Republican lawmakers are pushing to label Polisario as a terrorist organization.

Despite the political tensions, investor interest continues to grow. Foreign officials and private sector representatives are increasingly touring the region in search of opportunities.

“The Western Sahara has evolved from a no-go zone for foreign investors to a magnet for international capital,” said Riccardo Fabiani, North Africa project director at the International Crisis Group.

Mounir Houari, who heads Dakhla’s regional investment agency, said the area is targeting $40 billion in investments by 2040. That effort aims to boost the region’s contribution to Morocco’s GDP from 1% today to 6% in the years ahead.